South Africa hit with restrictions after pushing Taiwan too far
Taiwan has imposed restrictions on the export of chips to South Africa over national security concerns, taking the unusual step of using its dominance of the market to pressure a country that’s closely allied itself with China.
Taiwan now requires pre-approval for the bulk of chips sold to the African nation, its trade regulator said in a statement.
The decision emerged after Pretoria sought to downgrade Taipei’s representative office and force it to relocate to Johannesburg from the capital, Taiwan’s foreign ministry has said.
The move reflects both the island’s economic clout and a growing frustration with getting sidelined by Beijing in the diplomatic community.
Taiwan Semiconductor Manufacturing Co. makes the majority of the world’s most sophisticated chips, essential to cars, AI and industrial production.
South Africa began pressuring Taiwan to relocate its embassy from Pretoria to Johannesburg in 2023, shortly after hosting a BRICS summit attended by Chinese President Xi Jinping, a Foreign Ministry official in Taipei previously told Bloomberg News.
South Africa is intensifying its request as it prepares to host the Group of 20 leaders’ meeting in November that Jinping is expected to attend. Pretoria severed diplomatic ties with Taiwan in 1997.
“The South African government’s actions have undermined our national and public security,” Taiwan’s International Trade Administration said in a statement.
“We are adopting measures to restrict trade to maintain our sovereignty.”
TSMC representatives didn’t immediately respond to an emailed request for comment.
South Africa reiterates that its ties with Taiwan are non-political, said foreign ministry spokesman Chrispin Phiri.
“South Africa is a critical supplier of platinum group metals, like palladium, essential to the global semiconductor industry. Our current economic diplomacy is fundamentally shifting how we engage in the global value chains.”
Phiri added that Africa’s biggest economy intends to move beyond an extractive model to one of strategic value-add.
“This means building advanced industries at home, transforming raw materials into high-value products. This pivot secures a more resilient supply chain for the world and unlocks advanced, sustainable growth, and job creation for South Africa.”
A trade ministry spokesman didn’t immediately respond to messages seeking comment.
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